American investors who possessed the foresight to research a little-known investment vehicle known as ‘Freedom Checks’ could be in line for a pretty good payday. Matt Badiali has sounded the trumpet in the name of Freedom Checks for some time now and believes that more than $34 billion was set to be paid to investors in Freedom Checks this summer.
Matt Badiali seeks to dispel much of the misconceptions surrounding the investment opportunity and wants to make sure that Freedom Checks do not become confused with any government entitlement program. The fact is, the opportunity has the potential to result in monthly returns that would far outpace anything that could be expected from programs like social security.
It is not difficult to understand why some would be investors are not quite sure about the legitimacy of Freedom Checks as many less than reputable companies have begun to make use of the term to promote own marketing efforts. These companies seek to take advantage of the lack of public knowledge regarding the issue and suggests to Americans that this investment opportunity is something given away freely by the government.
Matt Badiali repeatedly stresses in the newsletter he publishes, Real Wealth Strategist, that investors should take the time to understand exactly what fuels this investment before looking to take advantage of the opportunity. To do so, an understanding must be gained regarding Statute 26-F and a business structure known as master limited partnerships.
MLPS were established by an act of Congress in 1981 and allow for business partnerships to also be traded publicly. A few years later Congress decided to increase the benefits gained through investing in MLPs by increasing the tax benefits enjoyed by them and this led to the creation of Statute 26-F.
The enactment of Statute 26-F in 1987 meant that master limited partnerships could operate tax-free if meeting two requirements. The first of these criteria is that 90 percent of the revenue generated by the MLP must be a derivative of the oil and gas industry. Secondly, 90 percent of their income must be paid to investors in the form of Freedom Checks.